BMC Software PIK-toggle notes (CCC+/Caa2) price at 99.5% to yield 9.118%

BMC Software this afternoon completed a senior contingent cash pay notes offering via a 13-bank underwriting group led by Credit Suisse, according to sources. Terms were finalized at the wide end of talk, after a $250 million upsizing. The issuing entity is Boxer Parent Company with the notes coming under Rule 144A for life. Proceeds will be used to finance a sponsor dividend. The deal comes eight months since a $6.9 billion buyout of BMC by Bain Capital and Golden Gate Capital, together with GIC Special Investments and Insight Venture Partners. Terms:

Issuer BMC Software (via Boxer Parent Company)
Ratings CCC+/Caa2
Amount $750 million
Issue senior PIK toggle (144A-life)
Coupon 9% (cash)/9.75% (PIK)
Price 99.5
Yield 9.118%
Spread T+726
Maturity Oct. 15, 2019
Call nc1
Trade April 8, 2014
Settle April 15, 2014 (T+5)
Px talk 99.5 in the 9% area yield
Notes Upsized by $250 million; callable after one year at 102, then 101, par; equity clawback feature allows up to 100% to be taken out at 102 in the first year, then at 101 in the second year.

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